PEUGEOT'S 207 has proved without doubt that it is a family hatch with a splash of dash, but there is one version that can also save you some cash.

The keyword to ultra economy with the 207 range is Oxygo, signifying models that produce the lowest possible CO2 emissions and return very high mpg figures.

With the Oxygo+ model I drove recently this all translated into an easy 65mpg and the car showed every sign of being able to return more if driven for ultimate economy.

It never ceases to amaze how economical small hatches are getting these days. There was a time when 40mpg would have been applauded but now the target is the magical 80mpg. I have a feeling that quite a few conventionally-engined cars will surpass it in years to come.

The Oxygo is one of the most vital elements of the 207, Peugeot's best selling new car. It has been around for some time and a replacement is just around the corner, but it is still a fresh and attractive form of everyday transport and as an added bonus has established a reputation for superb reliability.

The Oxygo+ I used tips the price scale at £14,695 and is very well equipped with such items as leather steering wheel, trip computer and Peugeot Connect with Bluetooth.

The economy ratings are aided by a combination of efficient engine technologies, energy-saving tyres and special aerodynamic styling.

Exempt from London Congestion charges and carrying zero road tax, the car is a compelling alternative to pure electric or hybrid power.

But being economical does not mean boring because the 1,560cc FAP diesel provides the Oxygo with a nippy personality and it is a competent cruiser on the motorway too.

As with all Peugeots comfort is high on the agenda and the 207 Oxygo+ does not fall short in this department. Seats would do justice to a much more expensive car and there is plenty of room for occupants.

If there are minus points it is that the engine demands precise gearshifts and the energy-saving tyres are a little firm in the ride department, but for all that the Oxygo proves time and time again that it is a car for today.

With the company's lion badge taking a prominent position on the bonnet, the 207 Oxygo+ is a gem of engineering for economy.